Latest news with #JoeTigay
Globe and Mail
28-05-2025
- Business
- Globe and Mail
1 Nuclear Energy Stock That Could Get a Huge Boost From Nvidia's Q1 Earnings
Rational Equity Armor Fund portfolio manager Joe Tigay sees Constellation Energy (CEG) shares gaining on the back of Nvidia (NVDA) earnings on Wednesday. The chipmaker is expected to record $0.80 a share of earnings for its Q1 after the bell, up significantly from $0.58 per share in the same quarter last year. Ahead of Nvidia's earnings release, CEG stock is up a whopping 92% versus its year-to-date low. Why Nvidia Earnings Matter for Constellation Energy Stock Joe Tigay expects Nvidia to signal continued demand for artificial intelligence as it reports its fiscal first-quarter financials later today. Investors may take that signal to mean energy demand will increase in the back half of 2025. Why? Because AI data centers are notorious for consuming unusually large amounts of power – and that's where CEG steps in. It's a Baltimore-headquartered firm that's committed to 'restoring some nuclear power plants,' the portfolio manager told Yahoo Finance in an interview on Wednesday. Investors should note that titans, including Google (GOOGL) and Amazon (AMZN), have increasingly been hopping onboard with the idea of using nuclear energy to power their super demanding AI infrastructure. Constellation Energy stock currently pays a dividend yield of 0.5%, which makes it significantly more exciting to own in 2025. Guggenheim Sees Significant Further Upside in CEG Shares Guggenheim analyst Shahriar Pourreza is bullish on the nuclear energy stock for the potential role it may eventually play in powering the AI data centers as well. Pourreza is particularly constructive on CEG's recent acquisition of Calpine (CPN), which aims at growing its presence in nuclear energy and positioning the Nasdaq-listed firm as a comprehensive energy solutions provider for hyperscalers. His 'Buy' rating on Constellation Energy shares comes with a price target of $378, which translates to potential upside of more than 20% from current levels. What's the Consensus Rating on Constellation Energy in 2025? Investors should note, however, that other Wall Street analysts are nowhere near as bullish on CEG shares as Shahriar Pourreza. While the consensus rating on Constellation Energy stock currently sits at ' Strong Buy, ' the mean target of about $303 signals potential downside of nearly 3% from here.
Yahoo
28-05-2025
- Business
- Yahoo
Nvidia earnings highlighting AI demand could lift these stocks
Ahead of Nvidia's first quarter earnings report, Rational Equity Armor Fund portfolio manager Joe Tigay joins Morning Brief with Brad Smith and Madison Mills to discuss which artificial intelligence (AI) sub-sector plays could react to the chipmaker's results. Tune in to Yahoo Finance's special live coverage of Nvidia's first quarter earnings here, beginning at 4:15 p.m. on Wednesday, May 28. To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Recorder
02-05-2025
- Business
- Business Recorder
Wall Street leaps to 1-month highs as Microsoft, Meta surge
NEW YORK: Wall Street's main indexes jumped to around one-month highs on Thursday, with the tech-heavy Nasdaq leading gains, as strong quarterly results from heavyweights Microsoft and Meta pointed to a resilient outlook for the technology sector. Microsoft surged 9% to its highest level since late January, driven by an upbeat quarterly growth forecast for its cloud-computing business Azure. The jump helped the stock surpass Apple to became the world's most valuable company. Meta Platforms gained 5.6% after posting higher-than-expected revenue on the back of a strong advertising performance. The ongoing tech earnings represent a 'critical inflection point' for the market, said Joe Tigay, portfolio manager of Rational Equity Armor Fund. 'Microsoft, Amazon, and their peers aren't just reporting numbers, they're revealing whether businesses are doubling down on cloud and IT or pulling back amid trade wars and economic uncertainty.' The fallout from erratic shifts in US trade policy has been the dominant theme this earnings season, with many companies slashing or withdrawing their profit outlooks. Still, S&P 500 first-quarter earnings are seen growing 12.9% on an annual basis, per LSEG data. Results from megacaps and Apple are due after markets close. Amazon shares were up 2.9%. Apple shares were little changed, lagging the rest of the 'Magnificent Seven' stocks after a federal judge ruled the iPhone maker had violated a US court order to reform its App Store. The S&P 500 and Dow were at nearly one-month highs, while the Nasdaq jumped to its highest since March 28. The S&P 500 is headed for an eight-session winning streak, its best since August, if gains hold. At 11:44 a.m. ET, the Dow Jones Industrial Average rose 333.61 points, or 0.82%, to 41,001.86, the S&P 500 gained 71.53 points, or 1.28%, to 5,640.59 and the Nasdaq Composite gained 398.64 points, or 2.28%, to 17,844.98. Other technology megacaps also rose, with Nvidia up 4.8%. That lifted the information technology and communication services sectors 3.3% and 2.1%, respectively, to over one-month highs. The day's economic data releases were mixed. Weekly jobless claims, coming in ahead of Friday's crucial nonfarm payrolls data, showed layoffs increased more than expected last week, potentially hinting at a pick-up in job cuts following tariffs. ISM PMI data showed US manufacturing contracted further in April, though slightly less than expected by economists polled by Reuters. That followed Wednesday's data showing the US economy contracted for the first time in three years in the last quarter. Among other earnings, Eli Lilly lost 10.7% after its quarterly results, pressuring the healthcare sector, while McDonald's dipped 0.7% after posting a surprise drop in first-quarter global sales. Mobile chip designer Qualcomm fell 8.3% after it forecast a hit to revenue from the trade war. General Motors gained 0.9% after offering a new forecast for 2025 core profit. Advancing issues outnumbered decliners by a 2.09-to-1 ratio on the NYSE and by a 1.68-to-1 ratio on the Nasdaq. The S&P 500 posted 9 new 52-week highs and 2 new lows while the Nasdaq Composite recorded 33 new highs and 44 new lows.
Express Tribune
01-05-2025
- Business
- Express Tribune
Tech rally lifts Wall Street to month high
A street sign for Wall Street is seen outside the New York Stock Exchange (NYSE) in New York City, New York, US, July 19, 2021. PHOTO: REUTERS Listen to article Wall Street's main indexes jumped to around one-month highs on Thursday, with the tech-heavy Nasdaq leading gains, as strong quarterly results from heavyweights Microsoft and Meta pointed to a resilient outlook for the technology sector. Microsoft surged 9% to its highest level since late January, driven by an upbeat quarterly growth forecast for its cloud-computing business Azure. The jump helped the stock surpass Apple to became the world's most valuable company Meta Platforms gained 5.6% after posting higher-than-expected revenue on the back of a strong advertising performance. The ongoing tech earnings represent a "critical inflection point" for the market, said Joe Tigay, portfolio manager of Rational Equity Armor Fund. "Microsoft, Amazon, and their peers aren't just reporting numbers, they're revealing whether businesses are doubling down on cloud and IT or pulling back amid trade wars and economic uncertainty." The fallout from erratic shifts in US trade policy has been the dominant theme this earnings season, with many companies slashing or withdrawing their profit outlooks. Still, S&P 500 first-quarter earnings are seen growing 12.9% on an annual basis, per LSEG data. Results from megacaps and Apple are due after markets close. Amazon shares were up 2.9%.
Mint
29-04-2025
- Business
- Mint
Microsoft and Amazon Capex in Focus Amid Potential AI Pullback
(Bloomberg) -- When the two biggest players in cloud computing report earnings this week, the amount the companies are spending will be just as interesting to investors as how much they are making. Ahead of results from Microsoft Corp. on Wednesday, and Inc. on Thursday, there have been reports suggesting that both companies may be cutting back on their spending on artificial intelligence infrastructure. That puts a spotlight on the capital expenditures announced in the latest earnings, which will offer insight into the outlook for AI demand and the broader consequences that might have for the economy. 'A slowdown in cloud computing or capex would scream economic caution and speak to recession fears in corporate America,' said Joe Tigay, portfolio manager of the Rational Equity Armor Fund. 'Any cutback in growth is hurtful to valuations, and would be damaging to the overall market. While multiples have come down a lot, we're not drastically cheap by any historical measure. If we are on a recessionary path, multiples will get a lot lower.' Both Microsoft and Amazon have declined this year, largely tracking the market lower as tariff risks have amplified concerns about economic growth. Amazon is more than 20% off a February peak, while Microsoft hasn't hit an all-time high since July. The four biggest spenders on AI infrastructure — Alphabet Inc. and Meta Platforms Inc., along with Microsoft and Amazon — are expected to spend more than $300 billion in their current fiscal years. The money plowed into AI-related investments had led to soaring stock gains in companies like Nvidia Corp., Super Micro Computer Inc., and Arista Networks Inc. Recently, though, Microsoft and Amazon have been at the center of a shift in expectations around industry spending. Bloomberg News reported that Microsoft has pulled back on data center projects around the world, with some of the pause coming abruptly. TD Cowen analyst Michael Elias last week wrote that channel checks 'indicate material MSFT equipment order cancellations' for data center supplies with a 'long-lead time.' Separately, Wells Fargo Securities wrote that Amazon's web services business is pausing some data center leases, although Kevin Miller, vice president of global data centers at Amazon Web Services, later wrote that there 'haven't been any recent fundamental changes in our expansion plans,' and that it continues to see 'strong demand for both Generative AI and foundational workloads on AWS.' Alibaba Group Holding Ltd. Chairman Joe Tsai had warned in March of a 'bubble' in data center construction. The emergence of the Chinese AI startup DeepSeek scrambled forecasts for future spending after the newcomer claimed performance that was comparable to U.S. models despite costing less and requiring fewer chips. Investors are also increasingly looking for the AI investments to translate to growth in a more pronounced fashion. Ned Davis Research closed its overweight recommendation on AI stocks last week, writing that the downturn in the group can continue, especially with the new risks created by the Trump administration's trade war. 'Higher policy uncertainty often leads to lower capex spending. We see no reason data center capex spending would be excluded,' wrote Pat Tschosik, the firm's chief thematic strategist. He added that 'AI spending is seen as discretionary and, just as companies pull back on capex in an economic downturn, they pull back on AI application development as well.' Alphabet Inc. reported capex of $17.2 billion last quarter, slightly more than had been expected. It plans to spend $75 billion on capex this year. The Google parent also posted better-than-expected operating profits for its Google Cloud business, even as sales slightly missed the analyst consensus. The company said there was more customer demand than company capacity for the cloud business, echoing comments made by all three cloud giants last quarter. Microsoft results are expected to show net earnings growth of 9.7% and revenue growth near 11%. Amazon's revenue is seen rising 8.2% with net earnings soaring almost 40%. Both are expected to grow consistently in the coming years, a key reason why Wall Street is nearly uniformly positive on them. For both names, more than 90% of the analysts tracked by Bloomberg recommend buying the shares. Jim Worden, chief investment officer of Wealth Consulting Group, is among those who retains a positive view on the pair. 'I don't think we'll see big reductions in capex, though there will likely be some discussion about being more efficient and how to best spend the money,' he said. 'Uncertainty is still really really high, but we've barely touched the surface for AI demand and use cases, so investors need to be patient and play the long game.' ServiceNow surged 22% last week, capping a record weekly gain, after the software company issued an outlook for sales growth that topped analysts' estimates, suggesting that software demand remains resilient even as the economy reels from the threat of tariffs. --With assistance from Subrat Patnaik. More stories like this are available on First Published: 29 Apr 2025, 03:44 PM IST
